So, when Nestlé announced that it has acquired
Freshly, a leading fresh-prepared meal
delivery service, for $950 million, with potential earnouts up
to $550 million contingent to the successful growth of the business
no one was surprise at Foodservice Solutions®.
The team at Foodservice Solutions® did ask Johnson an important lesson;
Is the consumer ready this time for fresh food fast, will the meal from Freshly
be the same quality of those from Culinary Brands?
Will the Freshly meals now be priced to
sell, or priced for a premium once again? What lessons has Nestle’ learned
after all Nestle owns Hot Pockets, Gerber, DiGiorno, Buitoni, Lean Cuisine, Stouffer’s,
Nescafe’ Ready to Drink, and many more.
In case you did not know, Freshly
delivers a menu of fresh, chef-cooked meals to subscribing members across the
United States, that, according to the company, breaks down the barriers to
healthy eating by delivering nutrition and convenience at scale and they were
founded in 2015.
Nestlé USA Chairman and
CEO Steve Presley , "We are excited to welcome Freshly to the Nestlé
family," ... "Consumers are embracing e-commerce and eating at home
like never before. It's an evolution brought on by the pandemic but taking hold
for the long term. Freshly is an innovative, fast-growing, food-tech startup, and
adding them to the portfolio accelerates our ability to capitalize on the new
realities in the U.S. food market and further positions Nestlé to win in
the future."
Battle for Share of Stomach
According press release, the move brings
together Nestlé's deep understanding of what and how people eat at home, and
world-class research and development capabilities with Freshly's highly
specialized consumer analytics platform and distribution network to fuel growth
opportunities within the Freshly business and across Nestlé's portfolio.
Nestlé, is the largest food and beverage
company in the United States, purchased an approximately 16% stake in Freshly
in 2017 as a strategic move to evaluate and test the burgeoning market of
home-delivered meals.
Freshly pioneered the direct-to-consumer
prepared meal delivery channel and is known for its use of standard-setting
technology and analytics, which will build upon Nestlé's strong base of
innovation. Growing year-over-year since launching in 2015, Freshly is now
shipping more than 1 million meals per week to customers in 48 states. Its 2020
forecasted sales are $430 million.
Get this, Freshly’s weekly subscription
service delivers fresh, chef-cooked meals to customers’ doors that can be
heated and served in three minutes. The company’s food philosophy is centered
on less sugar, less processed and more nutrients. All meals are gluten-free and
single-serve for effortless portion control. Developed by chefs and nutritionists,
the menu features better-for-you versions of classic comfort foods with smart
ingredient swaps.
Freshly CEO Michael Wystrach stated,
“We are extremely excited to expand our relationship with Nestlé,”. “Our
mission is to make eating healthy easy by bringing nutritious, high quality
meals directly to customers' homes. Convenience and nutrition are driving
forces in the future of food, and our becoming a part of the world's largest
food company confirms that. With Nestlé, we will have access to resources,
research and development, and years of experience that we can tap into to
catapult our growth plans and move closer to our goal of being in every
household in America.”
Laurent Freixe, Nestlé CEO Zone Americas continues by saying "At Nestlé we know
the at-home food market and we know how to win there,” “With the acquisition of Freshly we are
strengthening our position in the U.S. and expanding our ability to deliver a
wide variety of delicious food to our consumers when and where they want.
Whether purchasing our products from the comfort of their homes, in retail
stores or through social commerce, we will continue to provide them with
unbeatable convenience, choice and ease of purchase. Is, this how fresh meals will be sold, consumed
in 2022? Or will Freshly go the way of Culinary Brands? How well do you know
the Grocerant Niche?
Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization? Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the following links: Facebook, LinkedIn, or Twitter
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